Wind farm constraints continue to rise, both in total volume and in cost. In 2024 the consumer paid more than £393 million in 2024 in direct costs – and very much more than this in indirect costs – to discard 8.3 TWh of wind energy.
By comparison, in 2023, 4.3 TWh of wind-generated electricity was discarded at a direct cost of £310 million.
The prices being charged by wind farms to reduce output fell in 2024 in spite of subsidies having risen, which supports our view that prices have hitherto been excessive.
However, planning application data shows that the, in our view, indefensibly high rewards for constraints continue to incentivise wind farm development in areas of the UK that have low demand and weak grid connection, resulting in high constraints.
The bulk of the additional volume and cost of constraints is due to the ever-increasing number of Scottish wind farms being sited remote from areas of demand: more than 98% of the total constrained volume arises from Scottish wind farms.
In particular, the offshore wind farm, Seagreen, whose majority owner is SSE, was alone responsible for 40% of the total volume of constraints. Seagreen is currently unsubsidised but 25% of its capacity has been awarded an as yet unimplemented Contract for Difference (CfD). https://www.ref.org.uk/ref-blog/384-discarded-wind-energy-increases-by-91-in-2024?fbclid=IwY2xjawHl5zxleHRuA2FlbQIxMQABHdskZQKa41pb2W5DlUDOzXkBcsAbbehsz4NvKsbAXKGvBPCR1SG9wHXByg_aem_n91D5ZuHn5XllYlF9oU_1A
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